Briefly:

Intraday trade: Our Friday’s intraday trading outlook was neutral. It proved partly wrong because the S&P 500 index lost 0.3%, following slightly lower opening of the trading session. The market retraced some of its Thursday’s move up on Friday. We still can see negative technical divergences along with medium-term overbought conditions. Therefore, intraday short position is favored. Stop-loss is at the level of 2,600 and potential profit target is at 2,555 (S&P 500 index).

Our intraday outlook is bearish today. Our short-term outlook is neutral, and our medium-term outlook is neutral:

Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): neutral

The U.S. stock market indexes lost between 0.2% and 0.4% on Friday, retracing some of their Thursday’s advance, as investors’ took short-term profits off the table. The S&P 500 index trades around 0.7% below its November 7 record high of 2,597.02. It remains within a month-long consolidation following September-November rally. The Dow Jones Industrial Average lost 0.4%, as it was relatively weaker than the broad stock market on Friday. The technology Nasdaq Composite lost 0.2%, slightly retracing its rally to new record high of 6,806.68. The nearest important level of resistance of the S&P 500 index is now at 2,590, marked by Thursday’s local high. The resistance level is also at 2,595-2,600, marked by the all-time high. On the other hand, support level is at around 2,570-2,575, marked by short-term local lows.The next level of support is at 2,555-2,560, marked by last week’s local lows. The S&P 500 index extends its almost month-long fluctuations along new record high. Is this some topping pattern before medium-term downward correction or just consolidation before another leg up? There have been no confirmed negative signals so far. However, we can see medium-term technical overbought conditions along with negative technical divergences: